Industrial Output in India Accelerates to 5%

Mukesh Buch
10 Apr, 2015
New York City

Industrial production in February accelerates to the fastest pace in nine months. Foreign investors continued to lift exposure to stocks and favoured three rating agencies. IndusInd Bank agreed to acquire diamond & jewellery financing business worth $712 million from Scotland-based Royal Bank.

[R]6:00 PM Mumbai – Industrial production in February accelerates to the fastest pace in nine months. Rupee weakened and foreign investors continued to lift exposure to stocks and favoured three rating agencies. IndusInd Bank agreed to acquire diamond & jewellery financing business worth ₹4,500 crore from Scotland-based Royal Bank.[/R]

Stocks in Mumbai opened slightly higher on the back of positive international news.

Asian markets firmed up and markets in Hong Kong and in Shanghai extended recent rallies and European markets closed higher after Germany reported an increase in industrial production.

Market took a cautious view ahead of the release of industrial production data after the close.

Industrial output growth accelerated in February to 5%, the fastest increase in nine months according to the statistics bureau.

The government is preparing to release new data series based on revised base year and incorporating wider sample size.

Rupee weakened 7 paisa 62.31 against one dollar.

The Sensex Index fell 5.83 to close at 28,879.38. The CNX Nifty added 2.05 to 8,780.35.

For the week, Sensex and CNX Nifty indexes jumped 2%.

Stocks of rating agencies traded at new record highs on the sustained buying from foreign investors.

Credit Analysis and Research Ltd rose 4% to ₹1,808, Crisil Ltd gained 7.8% to ₹2,356 and Icra Ltd soared 12% to ₹4,992.85.

Gainers & Losers

Aurobindo Pharma Ltd advanced 1.3% to ₹1,341.20 after the company’s Australian-based subsidiary plans to sell its stake in Australia-based Eris Pharma for an undisclosed amount.

Biocon Limited slid 0.3% to ₹467.65 after the biopharmaceutical products maker received approval for Insulin Glargine, an insulins therapy that can be afforded by most people from the Mexican health authority.

CMC Limited fell 0.5% to ₹2,026.75 after net income in the fourth-quarter decreased 2.13% to ₹70.58 crore.

Revenues in the quarter advanced 4.75% to ₹670.71 crore.

Dr.Reddy''s Laboratories Ltd gained 1.6% to ₹3,800.15 after the drug maker estimated domestic sales to jump nearly 20% in the current fiscal year.

Glenmark Pharmaceuticals Ltd rose 0.5% to ₹870.75 after the pharmaceutical products maker’s U.S. subsidiary received an approval to sell a generic oral contraceptive product to sell in the domestic market.

IndusInd Bank Limited added 0.3% to ₹945.50 after the financial services provider controlled by Hinduja family agreed to acquire gold, diamond & jewellery financing business worth ₹4,500 crore or $721.7 million from Royal Bank of Scotland’s India unit.